Question

Marketing course

Crocodile Cleansers, a small company in the southeast, markets a variety of cleaning products. Although the company competes with major national brands, it has had a strong local following, especially among the working class. One of its principal products is AbStain, a fabric stain remover available only in liquid form. The new product manager for Ab-Stain is Robert Whitney, who has worked at Crocodile Cleansers for four years. Robert began his career at Crocodile as assistant product manager for Ab-Stain.

Robert faces a serious problem in his new position. Although Ab-Stain is superior to national brands as a stain remover for most types of stains, sales have been declining. After doing some market research, Robert finds that customers are switching to national brands. They are switching not because of the superior cleaning ability of the national brands but because these brands are available in aerosol sprays. Consumers find the aerosol sprays much easier to apply and less messy than Ab-Stain, which tends to spill into areas of the fabric other than the stained area. Robert realizes that to remain competitive, an aerosol spray should be offered. After a short discussion with Research and Development, Robert finds that the propellant necessary to make an aerosol spray for Ab-Stain contains hydrocarbons. Robert has read that hydrocarbons contribute to the creation of ozone in the lower levels of the earth’s atmosphere. During periods of extreme heat and stagnant air, ozone levels rise. Ozone irritates the respiratory system and can cause respiratory diseases.

Because of these concerns, Robert decides to do a study testing consumer attitudes about two new dispensers--an aerosol and a pump--and compare consumer reactions to their attitudes towards the original liquid. He hopes that the pump, which does not use hydrocarbons, is as acceptable as the aerosol. To his disappointment, consumers rate the pump equally with the liquid form but are very enthusiastic about the aerosol. Robert is faced with the difficult task of deciding whether to offer the environmentally damaging aerosol version of Ab-Stain, which is certain to reverse declining sales, or remain with the liquid. He knows he cannot appeal to consumers’ concern for the environment or health. If his target market were really concerned, they would not be switching to aerosol products offered by competitors.

QUESTIONS

Q1. Are consumer short-term wants and needs more important than long-term damage to the atmosphere and to consumers themselves?                                                                          

Q2. Should a company follow competition, even though competition is marketing a product which is environmentally unsound and harmful to people’s health? Do you agree or disagree? Discuss with the help of the given case.      

Answer 1

Q1. Are consumer short-term wants and needs more important than long-term damage to the atmosphere and to consumers themselves?       

Ans. Yes, consumer short term wants are important for the company as this drives business. Also, a product is sold better when the market is ready for it, creating a market of its own is challenging for a small company. Since it is already mentioned in the case that appealing to customers' concern for health and environment would be difficult, it is better to take short term advantage of the situation. Yet the Crocodile Cleansers should think about the long term damage they can cause upon the people and come up with a better alternative soon. More on this in the answer below.

2. Should a company follow the competition, even though the competition is marketing a product which is environmentally unsound and harmful to people’s health? Do you agree or disagree? Discuss with the help of the given case.   

The company is in its nascent stage, it's a small company as mentioned in the case. It is necessary for them to increase market share. Hence, in the short term, they should go with the aerosol sprays and compete. Since they cannot appeal to consumers' concern for health and environment, they should leverage the opportunity to increase profits.

Meanwhile, they should also invest more in research to come up with a product that is not hazardous but has similar spray like features of aerosol cleanser.

If they start following the ethical way from the beginning, it may get difficult for them to be profitable; the first objective of any business

But if research for a better product and sales would go simultaneously, they can fulfill their objective.

Once a nonhazardous product is made, the switch would be easy as people would start to trust the company by then. The company should also think about the appealing the consumer concern's during this time

Hope this answers your question. Do reach out for further clarification

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